Analysis by Crossborder Group Finds Tijuana #1 City in North America for Medical Device Manufacturing Employment

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Recently released research by Crossborder Group on the medical device industry shows that Tijuana, Baja California, has the highest amount of medical device manufacturing employment in North America, with over 30,000 employees in this city alone.

In a new briefing paper prepared for the Tijuana Economic Development Corporation (DEITAC), “Tijuana: North America’s Medical Device Manufacturing Capital”, Crossborder Group compared medical device cluster employment data from the U.S. Bureau of Labor Statistics for key U.S. counties and States,  along with late-2010  employment data from 38 companies in Tijuana surveyed by Crossborder, and regional data from Canada. The result: Tijuana’s medical device manufacturing employment was larger than that of the number two region (the Minneapolis-St. Paul metro area) by more than 7,000 employees.

           

“We knew that putting Tijuana up as a leader in North America for such an important technology sector would create some controversy,” states Kenn Morris, President of Crossborder Group, in charge of the study. “But the reality is that it’s based on data and independent facts…

Gaining Altitude: Aerospace industry report by Crossborder Group shows 7,300+ employees in Tijuana

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FACT: there are 29 aerospace industry firms operating in the City of Tijuana, Baja California.

FACT: based on a company survey of each of those 29 firms, Crossborder Group found average Q2-2011 employment totaling 7,313 workers, making Tijuana the Mexican city with the largest number of aerospace cluster employees within 400 miles of the US-Mexico border.

These are just two of the many findings in a recent aerospace industry white paper developed by Crossborder Group for the City of Tijuana Economic Development Corporation (DEITAC) and released at this year’s Paris Air Show by DEITAC and Baja California business and economic leaders. As with most of Crossborder’s business projects,

Border Surveys: Crossborder Holiday Shoppers Leave the Green in San Diego Stores

Download: PDF CrossborderInforma Brief on Crossborder Shoppers

Crossborder Group has released initial findings from their December 2010 (Winter Quarter) at-border surveys, conducted among nearly 1,000, randomly-selected northbound car, SENTRI, and pedestrian travelers at the San Ysidro and Otay Mesa Ports of Entry.  These results (download PDF at right) highlight nearly 800 responses from Mexico-residing visitors into San Diego and their Christmas Holiday purchases in San Diego County.

“Since 2003 we’ve been surveying border crossers, and have repeatedly asked Mexican shoppers to estimate their household expenditures on Christmas gifts purchased in San Diego,” explains Kenn Morris, President of California-based Crossborder Group and it’s Mexico subsidiary, Crossborder NS, S de RL de CV.  “This last Holiday season, Baja California visitors estimated that they’d spent $536 dollars per household on Christmas gifts purchased in San Diego — that’s an enormous and positive economic impact that the public should know about.”

Mexican Peso Strengthening – Lowest US$ Exchange Rate in 2+ Years

The Mexican peso has reached its strongest exchange rate against the U.S. dollar since October 2008 — 12.07 pesos to US$1 — benefiting some in the domestic market, while bringing back some concerns about a “Super Peso” for those that are involved with (or depend upon) cash inflows from the United States.

Possible Return of the Super Peso in 2011?

As seen in the graph at right (developed by Crossborder Group and based on historic Banco de México peso exchange rate data [showing the official rate to resolve currency obligations]), the peso was last at these levels in early-October, 2008, during a time in which the peso depreciated by 20-30% from 10 pesos per US$1.

A variety of factors appear to be creating this peso-strengthening trend:  a still-slow U.S. economic recovery, concerns about certain European markets (and the stability of the Euro), and the contrasting relative fiscal/economic stability in Mexico.  In fact, recent efforts by the Calderon Administration to increase foreign reserves to over US$113 billion and secure a US$73 billion two-year line of credit from the IMF, while maintaining Government debt to just over 2% of GDP, will likely contribute to some continued strengthening of the peso for at least the first half of 2011.

A new Super Peso could lead to increasing costs for international visitors to Mexico, as well as a higher cost for production in the foreign-dominated IMMEX/maquiladora industry — potentially undermining some of Mexico’s competitive strength internationally.  Crossborder Group will continue to track this issue throughout 2011, and can provide insights into potential impacts on your market or industry — contact us at answers[at]crossborderbusiness.com for more information.

Crossborder’s Research Data Highlighted in Article

We must admit:  it’s nice when your work gets some recognition — so it was a real treat for our Mexico market research staff to see data from some recent industry research being used in by the San Diego Union Tribune in a recent article (“Tijuana group aims to change city’s image” – August 8, 2010, by Sandra Dibble).

Tijuana Employment by Sectors - Data by Crossborder Group

While the print edition included two graphics (including some data we provided on the number of IMMEX/maquiladora firms in major Mexican cities), the online edition included the graph at right — which shows approximate employment numbers for various tech clusters in Tijuana based on research our team did over the last few months (including medical devices, aerospace, and others).

One piece of new information (which didn’t really get covered in the article) was our estimate of Call Center employment in Tijuana.  This is an emerging industry not just in Tijuana, but other parts of Mexico as well — and one that has much potential for growth (particularly given the bilingual nature of the US-Mexico border States). Look for more research from Crossborder Group on this topic in the coming months….

Crossborder Insights: After Recession Pitstop, Is Mexico’s Auto Industry Racing Ahead?

New data from several major automotive manufacturers signals a recovery, and a shift toward expansion and increased foreign direct investment into Mexico’s automotive industry.

Mexico Automotive Brief - Download PDF Here

Mexico’s automotive sector experienced a steep decline in production and investment in 2009 due to the global economic downturn.  In fact, by January of 2009, production of cars and light trucks had fallen to less than half of January 2008’s levels — a trend which continued throughout most of 2009.  However, several major OEM’s have recently announced plans for production or supplier expansions in Mexico over next few years.

Research and analysis conducted by Crossborder Group (in PDF at right) shows that

Client News: Major Industrial Supplier Chooses Crossborder Group for Mexico Market Research

We’re proud to announce that one of the world’s largest manufacturer of miniature ball bearings — and a major supplier of cooling fans, precision motors and electrical component — has retained Crossborder Group for a country-wide analysis of Mexico’s manufacturing markets, and new sales opportunities.  While not new to the Mexican market, this California-headquartered subsidiary of a major Asian company has contracted Crossborder to provide a state-by-state review of key manufacturing sectors (including both maquiladora/IMMEX and domestic manufacturers), regional industrial insights and strategic guidance, as well as survey-based feedback from potential customers companies in order to facilitate their growth in Mexico.

Follow Up to March 15 Post: “Our Two-Pesos: Today’s Travel Warning for Mexico…”

Just a quick update to our Opinion/Analysis from last Monday, about the change in the status of the U.S. State Department’s travel advisory — downgrading (again, in essence) the Mexico Travel Alert to a more ominous Travel Warning. It was our opinion that State Department rules require a Travel Warning to be issued when consular employees or their families are authorized to depart a country, and this was at the heart of the change from Alert to Warning. We cited a section of the Consular Affairs Manual: “[a] Travel Warning must be issued whenever a post goes to authorized or ordered departure status.”

Notably, most media missed this detail, and attributed the change to purely security issues. Well…just to underscore the value of analysis and research…[read more]

Crossborder Insights: A View of North American Unemployment By State/Province – Late 2009

As California’s unemployment rate actually edged up a few more notches to 12.5%, and the overall employment picture in the U.S. continues to be one of cautious optimism, Crossborder’s review of North American employment data through the end of December 2009 underscores the broad nature of job-losses throughout this interconnected economy.

Our most-recent CrossborderInsights brief (below) notes…[read more]

Client News: Tijuana EDC & Industry Leaders Announce 1st International Aerospace Forum on March 17-19, 2010

Some good news today out of Tijuana — related to the upcoming March 17-19 International Aerospace Supplier Forum being organized later this month. Previously, Crossborder had developed an Aerospace/Defense Industry Fact Sheet for our client (the Tijuana EDC [DEITAC]), and today our CrossborderComunica marketing team distributed the following press release about Mexico’s “1st International Aerospace Supplier Forum” to business media contacts in the U.S. and Mexico…[read more]